Supplementing your sweetie’s super: Just 6% of Australians pay into their partner’s pensions
Millions of Australians are unaware that they're able to supplement their partner's superannuation, according to new research by Finder.
A nationally representative survey of 1,015 respondents found only 6% of Australians – equivalent to 1.2 million people – are currently using their super to supplement their partner's.
The research revealed 10% of Australians didn't know it was possible to contribute to their partner's super.
Alison Banney, superannuation expert at Finder, said there were a number of instances where it might make sense to contribute to your spouse's super.
"It's great to see the gender pay gap drawing closer together, but the average super account balance for women is still considerably low compared to men."
The Association for Super Funds in Australia revealed almost 1 in 4 (23%) women retire without superannuation compared to 13% of men.
Additionally, men aged 60–64 have a median super balance of $154,453, compared to $122,848 for women.
"If your partner is on a lower income or is taking time off to care for the kids, using your super to supplement theirs can be a clever way to secure the future of their retirement."
According to Services Australia, employers are not obligated to make superannuation contributions for parental leave pay, but can be provided at the employer's discretion.
Banney urged Australians to look for a super fund with good long-term past performance and low fees.
"In general, you should avoid paying more than 1–1.5% of your account balance in fees.
"If you have multiple funds from several different employers, you're probably paying far more than you should be in fees. You can consolidate your super through your myGov account – it's free and takes just a few minutes," Banney said.
| Have you ever used your superannuation to supplement your partner's superannuation? | |
|---|---|
| No | 54% |
| I don't have a partner | 15% |
| I don't have superannuation | 14% |
| I didn't know I could do that | 10% |
| Yes | 6% |
| Source: Finder survey of 1,015 respondents, October 2021 |
You can compare superannuation funds for free at Finder.